IndexChallengesRisks associated with and mitigation of cryptocurrencyReferencesCryptocurrency is digital money[1]. It uses cryptography, the process of converting information into code, as security to establish the authenticity of each transaction[2]. There are several cryptocurrencies on the market but they all have four characteristics. Cryptocurrency is decentralized. Everyday currencies, such as the pound or dollar, are controlled by governments or regulatory bodies. Their creation and evaluation can be regulated by these bodies[3]. Cryptocurrency is different. Its creation and transactions are based on a peer-to-peer network and are then confirmed in a public register, available to all users[4]. There is no single entity that issues, guarantees, or influences cryptocurrency. Therefore, it is the pure supply-demand relationship of the cryptocurrency that governs its valuation. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay Cryptocurrency is transparent and anonymous. All transactions, from the first day of the cryptocurrency's creation, are stored in a public ledger[5]. For privacy reasons, the public ledger does not show the details of the parties but only their cryptographic signatures or hashes. This allows identification while maintaining anonymity[6]. Cryptocurrency is difficult to duplicate or counterfeit as it is based on cryptography and protocols using advanced mathematics and computer engineering[7]. Cryptocurrency is a cost-effective alternative to using financial institutions[8]. It eliminates the need for a third party to act as an intermediary as transfers are made directly between the parties, thus avoiding transaction fees. Challenges Cryptocurrency raises a number of challenges for regulators nationally and internationally which are mainly due to its issuance and operation. It is a self-managed system that issues units of value independently and serves as both a payment method and a means of custody[9]. This makes regulation extremely complex because each of these functions is currently performed by different entities in our society[10]. Effective regulation, therefore, requires a lot of time, personnel, infrastructure and international cooperation to implement[11]. The challenge for regulators is threefold. First, cryptocurrencies differ from each other and are used differently. Ripple is a cross-border payment software aimed at financial markets[12] while Bitcoin is used as an alternative to everyday currencies[13]. Meanwhile, Ethereum is a ledger technology that companies use to create new programs and smart contracts via their own currency[14]. It is more than just a currency unlike Bitcoin[15]. This variety of cryptocurrencies complicates the regulation of cryptocurrency as a whole. Second, regulators face the challenge of lack of resources. In many countries the resources needed to regulate cryptocurrency require justification from taxpayers and there are currently more pressing problems to solve in society[16]. For example, in September 2017, European Union customs officials expressed concern about the “lack of sufficient resources” to monitor virtual currencies[17]. As a result, this lack of resources leads to dealing with cryptocurrencies on a case-by-case basis rather than effective and comprehensive regulation[18]. Finally, the most complex aspects of cryptocurrency regulation are the multiple aspects of the currency itself. To avoid money laundering, regulators should focus on anonymity, while